THE AND

ENVIRONMENT DEVELOPMENT

HA NNAH FAY E N. LO ZANO

0 7 D ec em ber, 2 02 4
 01 Environment and 04 Urban Development and the
Development: The Basic Environment
Issues

Report 02 Global Warming and Climate

Change: Scope, Mitigation,
05 The Local and Global Costs of
Rain Forest Destruction
and Adaptation

Highlights 03 Economic Models of 06 Policy Options in Developing

Environment Issues and Developed Countries
The Basic Issues
▪ Economics and Environment
▪ Sustainable Development and Environmental Accounting
▪ Environment Relationships to Population, Poverty, and
Economic Growth
▪ Environment and Rural and Urban Development
▪ The Global Environment and Economy
▪ Nature Resource – Based Livelihoods as Pathway Out of
Poverty: Promise and Limitations
▪ The Scope of Domestic – Origin Environmental Degradation
▪ Rural Development and the Environment: A Tale of Two
Villages
▪ Environmental Deterioration in Villages
Economics and
Environment
• Environmental issues affect, and are affected by,
economic development
• Classic market failures lead to too much
environmental degradation
• Poverty and lack of education may also lead to
non-sustainable use of environmental resources
• Global warming and attendant climate change is a
growing concern in developing countries
Sustainable
Development
• Meeting present needs without compromising
future generations
• Balances economic growth and environmental
preservation
• Requires careful management of natural resources
• Aims to maintain or increase overall capital assets
overtime
Environmental
Accounting
• Incorporates environmental costs/benefits into
economic measures
• Sustainable Net Income (NNI*) = Gross National
Income (GNI) - Depreciation of Manufactured
Capital Assets (Dm) – Depreciation of
Environmental Capital (Dn)
NNI* = GNI – Dm – Dn
• Accounts for restoration and preservation of
natural resources
• Helps policymakers make more informed
decisions
Population Growth
and Environmental
Pressures
• Rapid population growth strains
natural resources which can lead to
land, water, and fuelwood shortages
• Urban areas face sanitation and
clean water crises
• Environmental degradation often
most severe in poorest regions
The Poverty-
Environment
Connection
• Poor often live on degraded,
polluted lands
• Lack political power to reduce
environmental hazards
• Poverty can drive unsustainable
resource use
• Providing institutional support to
poor is key for conservation
Balancing Growth and
Environmental
Protection
• Raising incomes of poorest may
provide environmental benefits
• But overall consumption rise likely
increases net environmental impact
• Challenge: To meet rising demand
while minimizing degradation
• Need for active environmental
policies, especially for global issues
• Some damage (e.g. biodiversity loss)
may be irreversible
Rural Development and
Environment
• Food production in developing countries needs to
increase by 50% in next 30 years
• Current farming practices are often unsustainable
• Women play a key role in rural resource
management
• Sustainable farming methods and inputs for small
farmers are crucial
• Land-augmenting investments can increase yields
Urban Development and
Environmental
Challenges
• Rapid urban population growth strains
infrastructure
• Many cities face water, sanitation, and health
crisis
• Illegal housing limits household investment and
access to services
• Urban environmental costs rise faster than
population growth
• City dwellers often have a lower carbon footprint
than rural residents
The Global Environment
Economy: Challenges of
Economic Growth

• As world population and • Some changes provide

incomes rise, environmental economic savings, others
degradation worsens require substantial investment
• Trade-offs necessary between • Poorer countries face greater
economic output and difficulty absorbing
environmental protection environmental costs
. • Key issues: biodiversity loss,
deforestation, population
growth
Natural Resource-Based
Livelihoods as a Pathway Out of
Poverty: Promise and
Limitations
• Over half of economically active • Can offer pathway out of
people in developing world poverty under right conditions
depend on agriculture, forestry • But access to benefits often
and fishing highly inequitable
• Environmental income vital for
majority of the poor.
The Global Environment
Economy: Challenges of
Economic Growth

• Lack of clean water and • Water pollution and scarcity

sanitation • Air pollution
• Indoor air pollution from • Loss of agricultural productivity
biomass stoves • Health hazards (e.g. waterborne
• Deforestation and soil diseases, respiratory illnesses)
degradation
Rural Development and the
Environment:
A Village in Sub-Saharan Africa

• Located in semi-arid landscape • Rapid population growth and

facing environmental challenges land use intensification which
• Trees serve crucial functions, leads to deforestation, soil
especially as firewood for erosion, declining crop yields
cooking and women spending hours
collecting firewood,
perpetuating forest depletion
Rural Development and the
Environment:
A Settlement Near Amazon

• Part of government • Despite abundant rainfall, soil is

resettlement program to reduce poor and yields decline after
urban overcrowding few years
• Settlers clear rainforest through • Farmers constantly move
slash-and-burn agriculture deeper into forest, causing
widespread deforestation
• Low, unstable incomes and
environmental devastation
persist
Environmental Deterioration in
Villages

• Economic necessity forces poor • Poverty resulting to resource

farmers to use resources depletion leading to lower
unsustainably productivity and increased
• Short-term survival often poverty
prioritized over long-term • Examples are eating seed crops,
environment health and over farming without
replenishing soil
Global Warming
and Climate
Change
▪ Scope of the Problem
▪ Mitigation
▪ Adaptation
Scope
•Average global temperatures have risen
significantly since the industrial revolution
•The Intergovernmental Panel on Climate
Change (IPCC) projects severe impacts:
❖ More frequent heat waves, droughts, and
floods
❖ Rising sea levels threatening coastal
areas
❖ Decreased crop yields in many regions
•Developing countries are most vulnerable to
climate change effects
Mitigation
•Reduce greenhouse gas emissions through:
❖ Transitioning to renewable energy
sources
❖ Improving energy efficiency
❖ Protecting and restoring forests
•Establish carbon pricing through taxes or cap-
and-trade systems
•Develop new technologies for clean energy
and carbon capture
•International cooperation is crucial, e.g. Paris
Agreement
Adaptation
•Adaptation is necessary as some climate change
is now inevitable
•Strategies include:
❖ Developing drought-resistant crops
❖ Building flood defenses and improving storm
warning systems
❖ Water conservation and management
❖ Protecting ecosystems to enhance natural
resilience
•Both "planned" (government-led) and
"autonomous" (private) adaptation are important
•Developing countries need support for adaptation
Economic Models of
Environmental Issue

▪ Privately Owned Resources

▪ Common Property Resources
▪ Public Goods and Bads: Regional Environmental
Degradation and the Free-Rider Problem
▪ Limitations of the Public-Good Framework
Privately Owned
Resources
▪ Market determines optimal consumption by
maximizing the total net benefits
▪ Net Benefit + Total Benefits – Total Costs
▪ 4 Conditions for Perfect Property Rights
• Universality
• Exclusivity
• Transferability
• Enforceability
▪ The owner has an economic incentive to maximize
the net benefit from its sale or use
Common Property
Resources
▪ Common property resources are publicly owned
and freely available to all. Examples are grazing
lands, fisheries,, and forests.
▪ ”Tragedy of the commons”. Overused leads to
resource depletion.
▪ It has individual incentives vs. collective interest
Understanding
Public Goods and
Bads
▪ A public good is anything that provides benefit to
everyone and not diminished by use (e.g. clean
air)
▪ A public bad decreases well-being for all (e.g. air
pollution)
• Regional environmental degradation caused
by deforestation
▪ On the other hand, a free-rider problem is the
situation in which people can secure benefits that
someone else pays for.
Limitations of the Public-
Good Framework

▪ Difficulty in determining appropriate prices

▪ People lack incentive to reveal true benefit
▪ Risk of free-riding behavior
▪ Government information deficiencies
Urban Development
and the Environment

▪ Environmental Problem of Urban Slums

▪ Industrialisation and Urban Air Polution
▪ Problems of Congestion, Clean Water, and Sanitation
Environmental
Problems of
Urban Slums
• Densely populated areas with poor infrastructure
• Families work long hours for uncertain income
• Difficult trade-offs between basic needs (food,
healthcare, education)
• Greater exposure to environmental hazards than
wealthier urban residents
Industrialization
and Urban Air
Pollution
• As countries industrialize, pollution often
increases then decreases as income continues to
rise. This relationship is called the Environmental
Kuznets Curve.
• At higher incomes, cities can afford cleaner
technologies. However, government regulation is
still crucial for improving air quality.
Problems of
Congestion, Clean
Water, and
Sanitation
• Over 1 billion people lack access to improved
water sources.
• 1.5 billion lack improved sanitation facilities.
• Many urban poor share a single water faucet
among 1000+ people.
• Lack of clean water and sanitation are major
health threats in urban slums.
The Local and Global
Costs of Rain Forest
Destruction
• Deforestation accounts for roughly 20% of CO2 emissions.

• Local costs:
➢ Loss of biodiversity, 12% of bird species, 24% of mammals at risk
➢ Reduced soil fertility and increased erosion
➢ Disruption of water cycles and local climate

• Global costs:
➢ Accelerated climate change
➢ Loss of potential medicines and other valuable resources

• Economic factors driving deforestation:

➢ Short-term gains from agriculture and logging
➢ Poverty and lack of alternative livelihoods
Policy Options in
Developing and
Developed Countries

▪ What Developing Countries Can Do

▪ How Developed Countries Can Help Developing Countries
▪ What Developed Countries Can Do for the Global
Environment
 01 Proper Resource Pricing

What 05 Raising the Economic Status of

Women

02 Community Involvement

Developing 06 Industrial Emissions

Abatement Policies

Countries Can 03 Clearer Property Rights and

Resource Ownership

07 Proactive Stance Toward

Do 04
Programmes to Improve the
Economic Alternatives of the
Climate Change and
Environmental Degradation
Poor
How
TRADE POLICIES
Developed 01 Re d u c e b a r r i er s an d s u bs i d i e s .

DEBT RELIEF
Countries Can 02 W i d e r ac c es s to i nt e r n at i o n a l m ar ket t o
r ai s e i n co m e an d i m p r o ve t h e ab i l i t y t o
service their debt.
Help DEVELOPMENT ASSISTANCE
03
Developing T h i s i s n ec e s s ar y to ac h i e ve s u s ta i n ab l e
d e ve l o p m e n t - a l l ev i at e p o v er t y, p r o v i d e
s e r v i c e s, an d p r o m o te s u st ai n a b l e p at t er n s

Countries of production.
What 01 EMISSION CONTROL.
Re d u c i n g h a r m f u l e m i s s i o n s .
Developed
02 RESEARCH AND DEVELOPMENT.
Countries Can D eve l o p i n g gr e e n h o u s e t e ch n o l o g i e s .

Do for the 03 IMPORT RESTRICTIONS.

Global C h an g i n g e n vi r o n m e nt al l y h ar m f u l
co n s u m p t i o n p at te r n s.

Environment
Thank You